Seriously Underwater Mortgages – Q1 2026 State Rankings
Industry Update
June 26, 2026
Source: ATTOM
What Is the Share of Seriously Underwater Mortgages in Q1 2026?
In the first quarter of 2026, the percentage of seriously underwater properties across the U.S. increased quarterly and annually.
Percentage of Seriously Underwater Properties: 3.2 percent of mortgaged residential properties, where the combined estimated loan balances are at least 25 percent more than the property’s estimated market value
Monthly change: up from 3 percent in Q4, 2025
Year-over-year change: up from 2.8 percent in Q1, 2025
The states with the highest shares of seriously underwater homes in the first quarter were: Louisiana, Kentucky, Mississippi, Oklahoma, Arkansas.
What’s Driving Q1 2026 Underwater Trends?
The share of seriously underwater homes continued to edge higher in the first quarter of 2026, reaching 3.2 percent of mortgaged homes nationwide, up from 3 percent in the prior quarter and 2.8 percent a year earlier. The increase was broad-based, with seriously underwater rates rising quarter-over-quarter in 44 states and the District of Columbia and rising year-over-year in 45 states and the District of Columbia. Homeowner equity remains relatively strong overall, but the data show signs of moderation as the share of seriously underwater properties edges up across much of the country.
Percentage of Seriously Underwater Rates by State – Q1 2026
Below is the complete state-by-state ranking for the first quarter of 2026, listing each state’s share of seriously underwater properties and the top four counties with the highest percentages of seriously underwater homes.
- Louisiana
11.8% seriously underwater, up from 10.7% last quarter and up from 10.5% last year
Counties: Vernon, Webster, Iberville, De Soto
- Kentucky
8.5% seriously underwater, up from 7.9% last quarter and up from 7.3% last year
Counties: Adair, Pike, Greenup, Hopkins
- Mississippi
8% seriously underwater, down from 8.3% last quarter and up from 6.6% last year
Counties: Washington, Lauderdale, Tate, Pike
- Oklahoma
6.6% seriously underwater, up from 5.4% last quarter and up from 5.5% last year
Counties: Okmulgee, Pontotoc, Stephens, Garfield
- Arkansas
6.4% seriously underwater, up from 5.6% last quarter and up from 5.8% last year
Counties: Columbia, Arkansas, Union, Hot Spring
- Iowa
6% seriously underwater, up from 5.8% last quarter and up from 5.7% last year
Counties: Lee, Tama, Henry, Black Hawk
- Kansas
5% seriously underwater, down from 5.3% last quarter and up from 4.7% last year
Counties: Dickinson, Finney, Wyandotte, Johnson
- Missouri
4.9% seriously underwater, up from 4.6% last quarter and up from 4.7% last year
Counties: Butler, Dunklin, Saint Louis City, Scott
- Illinois
4.9% seriously underwater, up from 4.7% last quarter and up from 4.8% last year
Counties: Mcdonough, Saline, Mason, Warren
- West Virginia
4.5% seriously underwater, up from 4.4% last quarter and up from 4.2% last year
Counties: Harrison, Mercer, Wayne, Cabell
- North Dakota
4.3% seriously underwater, up from 4.2% last quarter and down from 4.8% last year
Counties: Stutsman, Stark, Williams, Richland
- Nebraska
4.3% seriously underwater, up from 4.2% last quarter and up from 4.1% last year
Counties: Scotts Bluff, Gage, Lincoln, Madison
- Pennsylvania
4.3% seriously underwater, up from 3.9% last quarter and up from 3.9% last year
Counties: Greene, Jefferson, Philadelphia, Fayette
- Ohio
4.3% seriously underwater, up from 4% last quarter and up from 4.1% last year
Counties: Belmont, Pike, Coshocton, Scioto
- Maryland
3.8% seriously underwater, up from 3.7% last quarter and up from 2.9% last year
Counties: Baltimore City, Dorchester, Allegany, Somerset
- Alabama
3.7% seriously underwater, up from 3.6% last quarter and up from 3.4% last year
Counties: Dallas, De Kalb, Montgomery, Walker
- Indiana
3.7% seriously underwater, up from 3.3% last quarter and up from 3% last year
Counties: Miami, Jackson, Shelby, Washington
- Tennessee
3.7% seriously underwater, up from 3.4% last quarter and up from 3.1% last year
Counties: Dyer, Lauderdale, Haywood, Obion
- South Carolina
3.6% seriously underwater, up from 3.4% last quarter and down from 3.8% last year
Counties: Darlington, Laurens, Clarendon, Chesterfield
- Georgia
3.5% seriously underwater, down from 3.5% last quarter and up from 3.1% last year
Counties: Decatur, Berrien, Colquitt, Muscogee
- Wisconsin
3.5% seriously underwater, up from 3.4% last quarter and up from 3.4% last year
Counties: Taylor, Rusk, Monroe, Vernon
- New Mexico
3.3% seriously underwater, up from 3% last quarter and up from 2.8% last year
Counties: Rio Arriba, Lea, Eddy, Los Alamos
- Michigan
3.1% seriously underwater, up from 2.8% last quarter and up from 2.9% last year
Counties: Gogebic, Wayne, Branch, Cass
- North Carolina
3.1% seriously underwater, up from 2.9% last quarter and up from 2.5% last year
Counties: Caswell, Vance, Edgecombe, Bladen
- Minnesota
3% seriously underwater, up from 2.8% last quarter and up from 2.7% last year
Counties: Koochiching, Pennington, Hubbard, Wadena
- South Dakota
3% seriously underwater, up from 2.9% last quarter and down from 3.4% last year
Counties: Yankton, Union, Minnehaha, Meade
- Colorado
2.8% seriously underwater, up from 2.7% last quarter and up from 2.3% last year
Counties: Otero, Las Animas, Logan, Morgan
- Delaware
2.8% seriously underwater, up from 2.5% last quarter and up from 2.4% last year
Counties: Sussex, Kent, New Castle
- Idaho
2.8% seriously underwater, up from 2.6% last quarter and up from 2.5% last year
Counties: Valley, Shoshone, Franklin, Jerome
- Utah
2.6% seriously underwater, up from 2.6% last quarter and up from 2.6% last year
Counties: Washington, Sevier, Box Elder, Carbon
- Texas
2.6% seriously underwater, up from 2.3% last quarter and up from 2.3% last year
Counties: Starr, Lamar, Gray, Jim Wells
- Maine
2.5% seriously underwater, up from 2.2% last quarter and up from 2.1% last year
Counties: Aroostook, Washington, Franklin, Piscataquis
- Wyoming
2.4% seriously underwater, up from 2.3% last quarter and down from 2.5% last year
Counties: Campbell, Converse, Carbon, Uinta
- Virginia
2.4% seriously underwater, up from 2.4% last quarter and up from 1.97% last year
Counties: Greene, Brunswick, Fluvanna, Pittsylvania
- Florida
2.4% seriously underwater, up from 2.3% last quarter and up from 1.64% last year
Counties: Charlotte, Jackson, Gadsden, Marion
- Arizona
2.2% seriously underwater, up from 2.1% last quarter and up from 1.81% last year
Counties: Santa Cruz, Graham, Navajo, Pinal
- Oregon
2.2% seriously underwater, up from 2.1% last quarter and up from 1.8% last year
Counties: Jefferson, Malheur, Wasco, Coos
- Alaska
2.2% seriously underwater, up from 2.1% last quarter and up from 2.2% last year
Counties: Matanuska-Susitna, Fairbanks North Star, Anchorage, Kenai Peninsula
- Washington
2.1% seriously underwater, same as 2.1% last quarter and up from 1.93% last year
Counties: Pacific, Chelan, Grays Harbor, Stevens
- Nevada
2.1% seriously underwater, up from 1.88% last quarter and up from 1.64% last year
Counties: Nye, Elko, Lyon, Churchill
- Montana
1.93% seriously underwater, down from 2.2% last quarter and up from 1.89% last year
Counties: Yellowstone, Lewis And Clark, Silver Bow, Missoula
- New York
1.89% seriously underwater, up from 1.81% last quarter and up from 1.84% last year
Counties: Saint Lawrence, Herkimer, Franklin, Cattaraugus
- New Jersey
1.83% seriously underwater, up from 1.75% last quarter and up from 1.71% last year
Counties: Salem, Cumberland, Mercer, Hudson
- Hawaii
1.81% seriously underwater, down from 1.89% last quarter and up from 1.33% last year
Counties: Maui, Honolulu, Hawaii, Kauai
- California
1.7% seriously underwater, up from 1.66% last quarter and up from 1.34% last year
Counties: Trinity, Lake, Plumas, Siskiyou
- Massachusetts
1.5% seriously underwater, up from 1.3% last quarter and up from 1.2% last year
Counties: Suffolk, Berkshire, Franklin, Hampden
- New Hampshire
1.3% seriously underwater, up from 1.2% last quarter and up from 1.1% last year
Counties: Coos, Sullivan, Cheshire, Grafton
- Rhode Island
1.2% seriously underwater, up from 1% last quarter and up from 1% last year
Counties: Bristol, Providence, Kent, Newport
- Vermont
0.7% seriously underwater, same as 0.7% last quarter and same as 0.7% last year
Counties: Chittenden, Washington, Addison
Conclusion
The findings indicate that seriously underwater mortgage rates remain low across the U.S., but the first quarter of 2026 showed continued upward movement both quarterly and annually. Nationally, seriously underwater homes accounted for 3.2 percent of mortgaged properties, up from 3 percent in the prior quarter and 2.8 percent a year earlier, while the highest state-level rates were in Louisiana, Kentucky, Mississippi, Oklahoma, and Arkansas.
For full report, please click the source link above.